Economic policies and growth in the UK economy.ppt

* * * * * * * * * * * * * * * * Economic policies and growth in the UK economy A2 Macro Revision February 2009 Question Evaluate the extent to which government economic policy may have influenced the rate of growth of the UK economy in recent years (30 marks) 25-27 mins to write an answer to this one Probably room for 2-3 sides (inc diagrams) Stem Words Evaluate the extent to which government economic policy may have influenced the rate of growth of the UK economy in recent years (30 marks) Stem Words Evaluate the extent to which government economic policy may have influenced the rate of growth of the UK economy in recent years (30 marks) Stem Words Evaluate the extent to which government economic policy may have influenced the rate of growth of the UK economy in recent years (30 marks) Stem Words Evaluate the extent to which government economic policy may have influenced the rate of growth of the UK economy in recent years (30 marks) A Good Answer Will show a clear grasp of concepts Will understand what economic growth is Will show awareness of recent trends Will identify a range of policies Will appreciate the limitations of policies Will show an understanding of the external context … i.e. the UK in the global economy A Plan Short Opening paragraph Define growth 2nd paragraph Growth comes from…. 3rd and 4th paragraphs Identify some policies 5th paragraph Flag up some “successes” Final paragraph Criticise Govt policies Some supporting evidence will always score well Keep the early paragraphs short and clear “The rate of growth” Short term growth - % change in real GDP Trend growth - % change in potential GDP Sustainable growth Balanced growth E.g. between consumption and investment Between exports and imports Where does ‘growth’ come from Expanding capital stock Technological change Growing ‘active’ labour force Improvements in human capital Product and process innovation Higher productivity Competitive advantage in markets Most A2 answers make no reference t